UK milk price index increased first time since November 2013

The UK Agricultural Price Index (API) for all crop products was 0.2% lower in September 2015 compared to September 2014.

Trends The UK Agricultural Price Index

The price index for all crop products fell 1.2% between August and September 2015 compared to a 0.1% rise between the same two months a year earlier.

API measures price changes in agricultural outputs and inputs for the UK. The output series reflects the price farmers receive for their products,
also referred to as farm gate price.

Following the usual seasonal drop in production in September and the move by a number of milk companies to introduce winter contracts, the price index for milk rose 1.5% between August and September 2015.

This was the first real increase since November 2013. The increase in February 2015 was affected by retrospective payments to some producers. The price index in September 2015 was 23% lower when compared to September 2014.

The wheat index fell 4.6% between August and September 2015 compared to a 4% fall between August and September the previous year. The price index for wheat was 11% lower in September 2015 compared to September 2014.

The overall potato price index was 17% higher in September 2015 compared to September 2014. This is partly due to the reduction in planted area in 2015 compared to 2014 and a delay in lifting in September due to wet weather.

The price index for fresh fruit was 7% higher in September 2015 compared to September 2014. This rise was mainly due to sharp increases in the index price for raspberries, apples and pears when comparing the two years. Lower supplies and varying quality of fruit pushed prices up in September 2015 compared to September 2014.

Overall the price index for all animals and animal products was 8.2% lower in September 2015 compared to September 2014.

The pig price index has firmed over the last six months after a period of steady decline over the preceding six months. Despite the firming in prices, the pig price index remains low compared to 2014 and in September 2015 was 17% lower than September 2014.

The sheep and lamb price index has risen for the first time since March 2015. In September 2015 the sheep and lamb price index was 1.5% higher than August 2015 and 0.3% higher than September 2014.

Supplies have been slightly tighter and the recent strengthening of the euro against the pound has helped the export situation. Both these factors have helped raise the price slightly. ■